S0608 The Economics of Creative Goods

This is a course that explores issues not much discussed in standard economics course offerings. We are all familiar with comfort goods. These meet an immediate need, or relieve a pain (or discomfort). What if there are also goods whose consumption yields increasing returns – \"creative\" goods? How do such increasing returns come about? Time seems to be a factor that can help to account for increasing pleasure in consumption, as does the capacity for renewal in the ways one good relates to others. Novelty, too, appears to be important to our enjoyments, but how does the usual economic analysis of cost minimization and efficiency apply to innovative goods – goods which, by definition, have no history? Even if costs are necessarily an unreliable predictor of success for a new product, do they nonetheless help explain why we do not always choose for creative goods, or for creative uses of our time? Is addiction also a relevant consideration in the formation of our preferences and choices? Is there positive as well as negative addiction? Are there instances where consumers actually function as producers, altering products through their inputs? If novelty is important to us, can fashion really be considered irrational, wasteful?These are among the questions that will be addressed in this course.
We will meet twice a week, the first meeting being a lecture (with questions and discussion) and the second wholly devoted to discussion, centering on a designated reading already contextualized in the preceding lecture. The syllabus thus has a single theme for each week and requires one or more readings related to that theme. We are aware that students are likely to bring different degrees of economic exposure to the class, and we believe that it is possible to appreciate economic ideas at various levels, from the mathematical to the intuitive. Normally, therefore, readings will span a range in terms of their analytical demandingness. You will prepare those readings that match your level. Grading therefore will reflect each student\'s gain in knowledge and understanding.
Readings for the most part will be available electronically.